Friday, September 28, 2007
On September 28, the SEC announced the filing of a settled action against the spouse of a former officer of Triangle Pharmaceuticals, Inc. (Triangle) for illegal insider trading. The Commission's complaint, filed in the United States District Court of the Eastern District of North Carolina, alleges that, between October 2002 and November 2002, Daniel Joseph McKay (McKay)misappropriated from his spouse, who was then an executive vice president of Triangle, the material nonpublic information that Triangle had received an acquisition offer from another company. The Commission's complaint further alleges that, after misappropriating this information, McKay purchased Triangle stock and tipped two of his siblings, who also purchased Triangle stock. As a result of this illegal conduct, McKay and his siblings obtained a total of $11,416 in ill-gotten gains. With filing of the Commission's action, McKay has agreed, without admitting or denying the allegations in the Commission's complaint, to the entry of a final judgment permanently enjoining him from violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder, and ordering him to pay (i) disgorgement and prejudgment interest totaling $12,458.98 and (ii) a civil penalty of $11,416.